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Home » Huggababy News » Child Benefit Plans Could Be Revised, Says Children's Minister
Child Benefit Plans Could Be Revised, Says Children's Minister
The Chancellor is facing a growing backlash over his welfare reform policy, which will deny child benefits to millions of families with at least one higher-rate taxpayer from 2013.
The proposals have sparked particular anger because some families where both parents earn will be able to take home £87,000 a year while still receiving the payment, other households where a single breadwinner is paid £44,000 will see their benefits stopped.
Tim Loughton, the children's minister, admitted that the move could be in need of revision after unions, poverty campaigners and economists lined up to attack the plans.
He told Channel 4 News: "If there are ways we can look at compensating measures for those genuinely in need that will be looked at in future budgets.
"If the thresholds need to be adjusted there's plenty of time to look at that."
Yvette Cooper, the shadow work and pensions secretary, said Mr Loughton's comments showed that the proposals ought to be axed.
She said: "The Government's unfair attack on child benefit is now unravelling.
"The Chancellor only announced means testing this morning, and already the Children's Minister has admitted that the thresholds need to be looked at again."
The move was also criticised by David Davis, the veteran Tory MP, who claimed the system could encourage mothers to return to work earlier than they would otherwise have liked.
There have also been suggestions of a rift within the Coalition, because the Liberal Democrats' party conference a fortnight ago voted to maintain universal benefits.
Nick Clegg, the deputy Prime Minister, appeared to be caught of guard when questioned about Mr Osborne's annoucement on Monday morning, prompting his office to issue a statement insisting that he was "fully aware" of the Chancellor's plans.
Mr Osborne's decision to cut benefit payments to better-off families came despite repeated assurances during the election campaign that the benefit was safe.
He told the Conservative Party conference that the measure, intended to save around £1 billion in child benefit, was a "tough but fair" way to reduce Government spending.
From 2013 any household with at least one person on a salary of more than £43,875 will see their child benefit withdrawn, while households with two basic-rate earners could earn almost twice that sum and still receive the payment.
The announcement shocked many people, as both Mr Osborne and David Cameron had repeatedly stressed that they would not change the payment.
Child benefit, worth more than £1,700 a year to families with two children, was previously seen as crucial in ensuring that the middle class had a stake in the welfare system.
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